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Informist, Friday, Aug. 22, 2025

MUMBAI – While shares of steel companies are expected to consolidate next week, some analysts said there might be some correction in companies dealing in the non-ferrous space on high aluminium prices. Overall, the sector is unlikely to see much volatility ahead of the Wednesday deadline for US tariffs, with the negative effects being already priced in, analysts said.

"Aluminium prices are high, with the metal being always in demand presently...steel is already oversupplied in the country, so prices are weak," an analyst tracking the sector at a domestic brokerage said. On the government's proposed GST rationalisation, which was unanimously approved by the group of ministers on GST Thursday, the analyst said that only the automobile sector may bring some benefits to the metal sector. "However, inventories are already high (for auto companies), so I am not sure of it...rest we will have to see when details (on GST) come out," the analyst said.

Next week, the Nifty Metal is likely to move in a range of 9200-9549 points, said Vipin Kumar, assistant vice-president and senior derivatives analyst at Globe Capital Market. On Friday, the Nifty Metal ended the session over 1% lower at 9375.45 points. The index ended the week nearly 2% higher, rising for the third straight week.

On the earnings front, the metal sector reported mixed results, with differences across segments. "Q1 (Apr-Jun) results for the sector were mixed, with non-ferrous driving most of the sequential downside, while ferrous posted a marginally positive performance... steel companies delivered aggregate EBITDA of INR 210 bln, exceeding market's expectations," Emkay Global Financial Services said in a report. "Per the management commentaries, the key highlight was that Q2 is likely to be affected by a seasonally soft patch in demand, even as August saw a round of steel price hike," the brokerage added. For steel companies, lower coking coal prices and stable iron ore prices are likely to offset weaker steel prices in the September quarter, it said.

Among stocks in the sector, Jindal Stainless was the biggest gainer during the week, gaining nearly 7%. Vedanta gained 3% for the week, having declared a second interim dividend of INR 16 per share for 2025-26 (Apr-Mar) on Thursday. "With new capacities due for commissioning in near to medium term, the stock (Vedanta) trades inexpensive on the valuations front with healthy growth prospects on the offering," ICICI Direct Research said in a report Friday. Lloyds Metals and Energy closed the week 3% lower. The company Tuesday said it was the successful bidder for the Tandsi-III and Tandsi-III extension coking coal mines on Madhya Pradesh–Maharashtra border.

TOP HEADLINES

* India July crude steel output up 14% on year, says World Steel Association
* Usha Martin sells 10.11-acre leasehold land in Tamil Nadu for INR 295.2 mln
* Vedanta to pay INR 16/shr second interim dividend for FY26, record date Wed
* JSW Steel says arm Mivaan Steels wins bid for Chhattisgarh coal block
* Vedanta says filed detailed response to govt's representation in NCLT
* SC upholds ruling of Appellate Tribunal for Electricity vs Vedanta arm
* CNBC-TV18: Govt objects to Vedanta demerger; NCLT defers hearing to Sept 17
* Lloyds Metals successful bidder for coking coal mine on MP-Maharashtra border
* Sarda Energy wins bid for Senduri coal mine in Madhya Pradesh
* Vedanta board to meet Thu to mull second interim dividend for FY26
* Hind Zinc board gives nod to set 10 mtpa tailings unit for INR 38.2 bln
* JSW Steel takes ahead its 6 mtpa steel plant project with POSCO group
* MCX launches nickel futures contract for efficient price discovery
* Bombay High Court sets aside income tax notice against Tata Steel
* Reuters: Trump to set tariffs on steel, semiconductor chips in coming weeks
* SEBI warns Vedanta for modifying scheme of arrangement without prior consent
* Hindustan Copper Apr-Jun PAT rises 18.4% YoY to INR 1.34 billion

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Akash Mandal

Edited by Akul Nishant Akhoury

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